LDC: Empty shops show North-South divide

The North-South divide is clearer than ever with the South having one in ten shops lying empty while the North has one in five, according to the Local Data Company (LDC). 

LDC, which analyses over 3,000 town centres, shopping centres and retail parks, said that despite the deepening regional divide, there had been a “marked improvement” overall.

In the second half of 2014, the average shop vacancy rate was 13.3%, down 0.7% year-for-year, and well below February 2012’s peak of 14.6%.

The worst regional area is the North East with a shop vacancy rate of 18.8% in the second half of 2014, a fall of 0.3% on the same period last year.

The best region is currently London with a vacancy rate of 8.7%. The North East, North West and West Midlands all have a shop vacancy rate double that of London.

Some 20% of all shops the report tracked had been vacant for more than three years, amounting to almost 10,000 outlets.

Matthew Hopkinson, director at the Local Data Company, said: “2015 will be a significant year for retail places and we have already started to see the impact of the supermarkets’ decline with Tesco and Morrisons announcing store closures and a hold on any further development.

Whilst the numbers announced to date are small beer to the totals, the significance lies with the fact that whilst traditional shops have been closing it has been the supermarkets and convenience stores that have been expanding significantly which has kept the occupancy rates balanced.

“The question as to who will occupy these newly vacant stores as well as those, which have been empty for a while is a very difficult one to answer positively.”